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Days of grace allowed on a usance bill in India are
A1 day
B2 days
C3 days
D5 days
Answer & Solution
Correct answer: C. 3 days
1. Indian law allows three days of grace beyond the bill's stated period.
2. A 60-day bill drawn on 1 Apr matures on 1 Jun + 3 days = 4 Jun.
3. If the maturity date falls on a holiday, payment is due the preceding business day.
4. Hence (C) is correct.
_Source: Maharashtra Balbharati Std XII Book-Keeping & Accountancy, Ch 7 "Bills of Exchange", §7.2 ¶§7.2_